The first 39,000 tonnes of thermal coal under the agreement will be supplied between December 1, 2013 and December 31, 2014.

Sales have already begun with the first 3000t supplied this month.

Over the past month Intra Energy has secured an additional 204,000t of contract sales for its Tancoal mine.

With these contracts and increased production from the Malcoal mine in Malawi, monthly sales are forecast to exceed company break-even in the range of 20,000-25,000t a month in the third quarter of the 2014 financial year.

Given growth rates in the eastern and central African region are more than 6% per annum with many steel cement and other industrial projects in development, Intra Energy believes it is well placed to supply thermal companies to companies in those sectors that need energy.

Intra Energy executive chairman and managing director Graeme Robertson said the company’s latest coal supply agreement underpinned its growing revenue base from multiple supply agreements it had secured across eastern Africa.

“We are witnessing significant interest from potential customers in the textiles, cement, lime and steel industries, to name a few, that are looking to lock in new coal supply agreements,” he said.

“Many industries regard thermal coal as a reliable and cost effective source of energy.

“With coal operations in both Tanzania and Malawi, Intra Energy is rapidly emerging as a supplier of choice to companies in these sectors.”